We have audited the attached Balance Sheet of M/s. INTEGRATED
THERMOPLASTICS LIMITED, as at 31st March 2012 and the annexed Profit
and Loss Account of the Company for the Year ended on that date. The
financial statements are the responsibility of the company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examination on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for
In accordance with the provisions of Section 227 of the Companies Act,
1956, we report as under :
1. As required by the Companies (Auditor''s Report) Order, 2003 Issued
by the Central Govt, under Section 227 (4A) of the Companies Act 1956,
we enclose in the Annexure to our report the matters specified in the
2. Further to our comments in the Annexure referred to in paragraph 1
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as it appears from our examination of
c) The said Balance Sheet and Profit and Loss Account referred to in
this report are in agreement with the books of accounts;
d) The said Profit and Loss Account and Balance Sheet comply with the
Accounting Standards referred to section 211 (3C) of the Companies Act,
1956 except in case of Accounting Standard AS-15 Accounting for
Retirement Benefits in the Financial Statement of employers. The
Company accounts for leave encasement on cash basis and provisions
required at 31st March, 2012 have not been ascertained, hence we are
unable to express our opinion in respect thereof (refer note no 21
e) In our opinion, as per the information furnished to us no Director
is disqualified from being appointed as a Director under clause (g) of
sub-section (1) of section 274.
f) Subject to the foregoing, in our opinion and to the best of our
information and according to the explanations given to us, the said
accounts, read together with significant accounting policies in
schedule 16 (A), and notes on accounts in schedule 16 (B) give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view;
i) In the case of the Balance Sheet, of the State of affairs of the
Company as at 31st March 2012 and
ii) In the case of the Profit and Loss Account, of the Profit of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITOR''S REPORT
(Referred to in paragraph 1 of our report of even date)
ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITOR''S REPORT OF EVEN DATE
1 a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed Assets.
b) According to the information and explanations given to us the fixed
assets have been physically verified by the management during the year
and no discrepancies were noticed on such verification.
c) No Substantial part of fixed assets have been disposed off during
the year, which has bearing on the going concern assumption.
2. a) The stock of finished goods, stores, spare parts and raw
materials have been physically verified by the Management during the
year. In our opinion the frequency of verification is reasonable and
b) The procedure of physical verification of stock followed by the
management is reasonable and adequate having regard to the size of the
company, the nature and volume of its business.
c) The Company is maintaining proper records of inventory and the
discrepancies noticed on verification between the physical stocks and
the book records were not material and the same have been properly
dealt with in the books of accounts.
3. a) The Company has taken loan from companies, listed in the
register maintained under sec. 301 of companies Act, 1956, and the
company has not granted loan to companies, firms or other parties
listed in the register maintained under sec. 301 of Companies Act,
b) The rate of interest and other terms and conditions of loans given
or taken by the company, secured or unsecured are prima facie not
prejudicial to the interest of the company.
c) The payments of the principal amount and interest amount are
d) There are no over due amounts of more than rupees one lac.
4. In our opinion, according to the information and explanation given
to us there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchase of inventory, fixed assets and for sale of goods. During the
course of our audit, no major weakness has been observed in the
5. a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
Register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions with parties with whom transactions
exceeding the value of rupees five lacs have been entered into during
the financial year at prices are reasonable, having regard to the
prevailing market prices at the relevant time.
6. The provisions of section 58A and 58AA of the Companies Act, 1956
are not applicable, as the Company has not accepted deposits from the
7. The Company does not have a formal internal audit department but
the Company''s internal control procedures can be considered as an
adequate internal audit system commensurate with the size and nature of
its business through personal supervision of management in respect of
purchase of stores, raw material including components, trading goods,
plant & machinary and other assets and for the sale of goods.
8. Cost records under Section 209 (1) (d) of the Companies Act 1956,
are not prescribed for the business carried out by this Company.
9. a) According to the information and explanations given to us the
company is regular in deposting undisputed amounts payable in respect
of Provident Fund, Investor Education and Protection Fund, Employees
State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Customs Duty,
Excise Duty, Cess and other statutory dues with the appropriate
authorities, which were outstanding as at 31 st March 2012 for a period
of more than six months from the date they become payable.
b) There are no disputed statutory duties under Sales Tax/VAT / Income
Tax Custom Tax / Wealth Tax / Excise Duty / Cess Duty pending for
10. The Company has not incurred cash losses during the year and in
the preceding year. The accumulated losses are Rs.13688393.59 as
against the net worth of Rs.63059288.42.
11. Based on our audit procedures and the information and explanations
given by the management, the company has not defaulted in repayment of
dues to financial institutions.
12. According to the information and explanations given to us the
company has not granted loans and advances on the basis of securities
by way of pledge of shares, debentures and others securities
13. Clause No. XIII of CARO 2003 is not applicable to the company, as
this company is not a chit fund/nidhi/mutual benefit fund/society.
14. Clause No. XIV of CARO 2003 is not applicable to the company, as
this company is not dealing in shares, securities, debentures and other
15. According to the information and explanations given to us the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. Clause No. 4 (CVI) of the CARO-2003 is not applicable, as the
company is not having term loans.
17. The funds raised on short-term basis have not been used for
long-term investment and vice versa.
18. The company has not made any preferential allotment of shares
during the year.
19. The company has not issued Debentures.
20. The company has not raised any money through public issue during
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud and or
by the company has been noticed or reported during the year.
For L.B.REDDY & CO.,
Place : Hyderabad M. THIRUPALU REDDY
Date : 14-08-2012 Partner, M.No. 203098